Anyone who searches “fraud lawyers near me” on the internet will get a feel for how prevalent fraud really is.
It often seems like the bad guys are ahead. Fraud-prevention technology evolves at lightning speed, but sophisticated hackers are never far behind. Local law enforcement agencies, which often have limited resources and manpower, can only do so much.
While fraud is very real and widespread, consumers needn’t be sitting ducks. Education goes a long way toward prevention and damage control. Here are some common schemes as well as ways that consumers can protect themselves.
Identity Theft
This might be the worst threat of all. That’s because there are so many ways to steal an identity, so many ways to use it, and so many criminals to sell it to.
For identity thieves, these pieces of information are in hot demand:
- Social Security numbers
- Drivers’ license numbers
- Phone numbers
- Home addresses
- Email addresses
- Work credentials
- Mortgage information
- Health and insurance records
- W-2s
- Internet user IDs and passwords
Sensitive information should be stored in a safe place rather than carried around in a purse or wallet. As a rule of thumb, no one should provide personal data unless they initiate contact. For example, a man calling his bank to ask about investment opportunities is largely safe giving his account number.
Unauthorized changes on a credit report, such as a name variant or change of address, are dead giveaways to identity theft. Unfamiliar accounts or loans are also red flags.
Debit and Credit Card Fraud
Are people safer shopping in person or on the internet? That’s hotly debated, but one thing’s for sure: Thieves don’t have to physically possess a card to wreak havoc.
There are ingenious ways to steal card numbers. Crooks plant card skimmers on ATMs or gas pumps. Savvy cyberthieves use malware to monitor keystrokes when online shoppers enter account information.
Cardholders would be wise to monitor credit card and bank accounts weekly or even daily. Telltale signs of card fraud include surprising balances, unfamiliar charges or retailers, and charges incurred in distant locations.
Fortunately, victims who report card fraud as soon as possible have limited liability if any at all.
Bank Account Takeover
Someone can steal a bank account with nothing more than a personal check. However, internet attacks are more common these days.
Fake overtures supposedly from a bank are harder than ever to spot. A victim might get an email asking for updated account information. A link leads to a page that looks exactly like the bank’s website, right down to the layout and logo. The hacker captures any information that the victim types in. The hacker is then able to transfer funds to a personal account or make purchases on the internet. Many thieves steal a little at a time to avoid arousing suspicion.
Again, accounts must be closely monitored for questionable activity.
Phone Scams
Just when it seems safe to go back into the water, there’s a new wave of phone scams.
Most people know by now that legitimate entities never ask for money or sensitive information by phone. Even so, there are still plenty of ways to get cheated. Phone scams that don’t involve the IRS, the Social Security Administration or a financial institution — and many do — often involve the following:
- Fake prizes
- Fake charities that the caller knows little about
- Phony vehicle recalls or extended warranties
- Sob stories about strangers across the globe
- Sob stories about loved ones
- Made-up debt collections
- The purchase of gift cards or money orders
Preventing fraud is often a matter of common sense. Prizewinners never have to pay fees to claim their awards. Lottery winners can rest assured that the IRS will withhold taxes; they won’t have to send money to someone who calls on the phone. Anyone who has ever had credit card debt knows that card issuers don’t just dial up and offer lower interest rates. Target gift cards never got a relative out of a jam or settled a hospital bill.
Consumers who are in doubt should hang up and call the supposed organization using a reliable, published number.
Mail Fraud
All kinds of scams share similar goals and involve similar lies. The only difference here is that the fraud involves the U.S. Postal Service or a piece of mail.
If a postcard, letter or package plays any role in the deception, it’s mail fraud. Stealing mail, opening someone else’s mail, and sending chain letters for money are federal crimes.
Many letters from charities are legitimate, but people should verify solicitations with a phone call. They shouldn’t trust the number on the letter as letterheads get forged. The same goes for good news about contests or sweepstakes.
It’s best to take outgoing mail to the post office and to stop mail delivery during prolonged absences from home.
Tax-related Fraud
This is quite prevalent among people who are owed a tax refund.
An identity thief who gets hold of a W-2 and knows her way around IRS forms can collect the refund. Victims don’t suspect a thing until they attempt to file and are told that they already have.
The IRS is not known for its sense of humor, and it doesn’t take tax fraud lightly. Victims should go immediately to irs.gov, search “reporting fraud,” and follow the prompts.
Who Is Most Vulnerable to Fraud?
The short answer is everyone.
However, the elderly, college students and parents of college students are especially susceptible. Scammers also seem to enjoy kicking people when they’re down.
For example, mortgage holders experiencing tough times should beware. Unemployment insurance fraud skyrockets in a recession. Predators go after sick patients’ information, file bogus claims and gobble up the benefits. The COVID-19 pandemic invited numerous scams involving fake cures, fake testing kits, fake protective gear and fake life insurance.
Awareness and proactive steps to protect oneself are powerful weapons against fraud. With any luck, “fraud lawyers near me” will soon become less common in search boxes.